The big industrial houses seem to be on the high profitability track again. Earnings numbers available from India's top 25 industrial houses reveal that they have shrugged off the single-digit earnings growth number recoded in the September 2009 quarter and are back in the high performance zone.
The net profit of these top business houses (excluding banks and financial services companies) showed an increase of 96.8% during the December quarter of 2009 over the previous year. For the same period, operating profit of these industrial houses increased by 59.2%.
Among the lot, the highest growth in net profit was reported by the Bajaj (BAJAJAUTO.NS : 2101.05 0) Group as its profits jumped by a staggering 595.2% followed by the RP Goenka Group, which recorded a 578.7% growth in net earnings for the quarter ended December 2009 over the corresponding quarter of the previous financial year.
On the other hand, the Jaiprakash Group logged sales growth of 113.5% followed by Mukesh Ambani-led Reliance Industries (RELIANCE.NS : 993.75 +12.05) with a growth of 92.2%. Ispat Group reported a 89.4% growth in sales.
The Tata Group, second highest in terms of aggregate sales, for the December 2009 quarter reported a 141.1% hike in net profit and an increase of 21.6% in sales.
Among the Bajaj Group of companies, Bajaj Auto catalysed the profit growth with net earnings growing by 189.2% in the December 2009 quarter. Sales of Bajaj Auto also increased by 57.9% to Rs 3,165.84 crore during December 2009 from the level of Rs 2004.75 crore in the year-ago period.
On the other hand, a significant growth rate in sales was witnessed in the cases of the Munjal Group, Hinduja Group, Jindal Group, Sterlite Group, Mahindra Group, Ruchi Group, Videocon (VIDEOIND.NS : 214.3 +3.25) Group and Torrent Group.
In absolute terms, the total net profit of the 25 largest business houses has increased to Rs 16,957 crore in the quarter ended December 2009 from Rs 8,616 crore in the corresponding quarter of the previous financial year..
More than 100% increase in net profit was witnessed in the cases of nine houses. These include Mahindra, Videocon, BK Birla, Hinduja, R P Goenka and Welspun .
Among the top five business houses, Reliance Industries, led by Mukesh Ambani, posted the second highest rise in sales, from Rs 29,582 crore in the December 2008 quarter to Rs 56,869 crore in December 2009 quarter.
The aggregate net profit of Mukesh Ambani-led group of companies increased by 15.8% to Rs 4,013 crore in the October-December 2009 period from Rs 3,467 crore in the year-ago period. Theses companies accounted for 20% or more of the total sales of the top 25 business houses.
Source:Indian Express Finance
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